Total Pays $900 Million for Control of Ugandan Oil Project

10 Jan 2017   Uganda

An oil exploration tower in Lake Albert, Uganda. Total SA agreed to buy a stake in a project in Uganda from Tullow Oil Plc for $900 million as a recovery in crude prices accelerates the pace of deals in the energy industry. French oil major Total will acquire a controlling stake in the Lake Albert development, the companies said Monday in separate statements. Total will pay an initial $100 million in cash, with another $100 million split equally when the project gets sanctioned and when it first starts pumping oil. The remaining $700 million is a “deferred consideration,” used by Tullow to fund its share of the costs. “Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3 a barrel with upside potential,” Chief Executive Officer Patrick Pouyanne said in a statement. The […]

Tags:

Comments are closed.